$694M Loan at 4.34% Blended Rate Boosts Realty Income Funding
Realty Income closed a $694 million term loan due January 2036 at a 4.91% fixed rate and swapped $500 million for €431 million to achieve a 4.34% blended borrowing cost. The deal supports San Diego Community Power’s energy prepayment and diversifies Realty Income’s long-term debt at below-market rates.
1. Term Loan Closing and Pricing
Realty Income closed a $694 million U.S. dollar-denominated term loan due January 2036, priced at a fixed 4.91% all-in rate as a senior unsecured obligation ranking pari passu with existing debt.
2. Cross-Currency Swap and Effective Rate
The company executed a cross-currency swap on $500 million of proceeds, converting them into approximately €431 million and locking in an effective blended borrowing rate of 4.34% over the loan term.
3. Strategic Diversification and Community Support
This financing supports San Diego Community Power’s energy prepayment structure and diversifies Realty Income’s long-term debt funding sources by securing fixed-rate financing below similar-tenor public unsecured debt levels.